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Court Remains Uncertain On How To Apply The New Due Diligence Requirement For Preference Claims - Insolvency/Bankruptcy

The Bankruptcy Code and its predecessor statutes have long permitted bankruptcy trustees (or their equivalents) to claw back preferences, which involve transfers made on preexisting debts...

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Delaware Bankruptcy Court Rules That Due Diligence Is Element Of Preference Claim Rather Than Basis For Affirmative Defense - Insolvency/Bankruptcy

A bankruptcy trustee's ability to avoid and recover pre-bankruptcy preferential transfers is essential to preserving or augmenting the estate for the benefit of all stakeholders.

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